This webinar discussed warning signs that a nonprofit may need more than a basic business accounting solution. It covered difficulties tracking restrictions according to FAS 116, budgeting and reporting on multiple data elements, customizing reports for different funders, and allocating expenses to grants and programs. The presenters were from Net@Work, a consulting firm that offers nonprofit solutions and can help organizations with needs assessments. Questions were invited at the end.

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Live Webinar:
Webinar Audio:
You can dial the telephone numbers located on your webinar panel.
Or listen in using your headphones or computer speakers.
Welcome!
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Today’s Presenters
Jane Houle | Net@Work
Nonprofit Solutions Team Leader
jhoule@netatwork.com
312-651-0364

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Webinar Details
• Presentation is roughly 50 minutes
• All phone lines are muted
• We will have about 15 minutes for questions after the
presentation. Please type your questions in the box located at
the bottom of your webinar panel.

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Net@Work Overview

5. Warning Signs that you may need more than a business
accounting solution
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• Difficulty tracking restrictions according to FAS 116
• Unable to budget and report on multiple data elements
• Cannot create reports to span fiscal years
• Difficulty recording allocations of costs for grantors and
programs
• Cannot customize reports for each funding source within
the accounting system
• Difficult to Audit
• You spend too much time in Excel

6. Difficulty Tracking Restrictions
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• Major donations and grants are commonly given with a set
of specific and unique restrictions. The associated funds are
either "restricted" or "unrestricted".
• Failure to demonstrate that "restricted" funds have been
used correctly can have some serious organizational
consequences, including termination of executives, loss of
funding, and worst case - the loss of tax-exempt status.
Solutions that are built specifically for fund accounting (such
as Abila MIP Accounting ) are specifically designed to help
nonprofits meet tracking and reporting responsibilities and
handle the special requirements.

7. Restrictions- Statement of Activities
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8. Can You Budget and Report on Multiple Data Elements?
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• Can you track budget versus actual for an activity or grant?
• All accounting systems can record a revenue or expense but
do you need more detail?
• Many systems can include a “class” or “sub-account”, but
does this create apples and oranges?
• Program
• Grant
• Location
• Fund
• More?

9. Track performance of an Activity or Grant
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10. Create Reports to Span Fiscal years
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• Grant years and fiscal years are not always the same
• Do you need to run two reports and add them up?
• Is there an issue with pulling revenue and expense for
closed fiscal periods?

11. Record Allocation of Expenses for Grants
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• Can you allocate expenses to the appropriate programs
and/or grants within the system?
• Federally approved indirect cost rate?
• Creating a federally approved cost allocation plan
• Do you need to pool expenses and then use cost rate to
allocate to grants

12. Record Allocation of Expenses for Grants
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13. Custom Reports for Funders
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• Do your funders accept your monthly financial reports or
do they have a required format?
• Can you easily filter to only the expenses for that funder?

14. Is Your System Difficult to Audit?
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• Complying with FASB 116 and 117
• Can transactions be changed after posting or is there an
audit trail ?
• Does your accounting system prove out your internal
controls?

15. Do you spend too much time in Excel?
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• Are allocations of expenses are done in Excel?
• Do you track grant expenditures actual versus budget on a
spreadsheet?
• Are you creating specific reports for internal(Board) and
external(Funders) use in Excel?
• Do you track receivables and/or payables in Excel?
• Duplicate entry = time = $$

16. More Questions to Ask
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• Do you have nonprofit/governmental specific
needs like tracking encumbered funds
• Are you on the most current software version
• Is your software version still supported
• Is your board asking you about “The Cloud”
• Are you projecting growth in the near future

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Please type in
your questions
Any Questions?

18. Can Net@Work Help?
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• Whitepapers:
• Has Your NonProfit Organization Outgrown its Small
Business Accounting Solution?
• Increase your Accountability and Transparency:
Ten reasons why nonprofits need true fund accounting
instead of a commercial accounting system
• Can we help with a needs analysis?

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Thank You For Attending!
Jane Houle
Net@Work - Nonprofit Solutions Team Leader
Email: jhoule@netatwork.com
Phone: 312-651-0364
800-719-3307
www.netatwork.com
netatwork.com/blog
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